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REPORT 


OF 


(MISC.  PUBS. 


Commission  on 
Local  Transportation 


OF  THE 


CITY  OF  CHICAGO 

APPOINTED  BY 

MAYOR  WM.  HALE  THOMPSON 


UNDER  AN  ORDINANCE  OF  THE  CITY  COUNCIL 
ADOPTED  NOVEMBER  10.  1919»  /y;^^,  / 


December  1920 


44  Li 


'f^^l. 


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Members 

of  the 

Commission  on  Local  Transportation 

appointed  by 

Mayor  Wm.  Hale  Thompson 

SAMUEL  A.  ETTELSON,  Chairman 
CPiARLES  R.  FRANCIS 
JOHN  P.  GARNER 
PATRICK  H.  MOYNIHAN 


WILLIAM  D.  McJUNKIN,  Secretary 
ROBERT  J.  LYMAN,  Assistant  Secretary 


LEGAL  STAFF: 

CHESTER  E,  CLEVELAND,  Chief  Counsel 
CHARLES  E.  WARD  -j 

EDWARD  H.  WRIGHT  \     Associate  Counsel 

WILLIAM  F.  MULVIHILL     ) 

ENGINEERING  STAFF: 

GEORGE  W.  JACKSON,  Engineer 


ALFRED  SLADE  .     . 
THOMAS  C.  JACKSON 
JOHN  T.  FANNING 
JESS  COFFEEN     .     . 
CHARLES  S.  DUKE 
E.  A.  CLARK     .     .     . 
LEON  L.  CLARKE     . 
A.  D.  SHANKS       .     . 
W.  L.  BENNETT  .     . 
FLOYD  ROQUEMORE 
C.  A.  SANDAHL    .     . 


Consulting  and  Advising  Engineer 
Designing  Engineer 
Designing  Engineer 
Designing  Engineer 
Designing  Engineer 
Engineer  and  Designer 
Engineer  and  Designer 
Engineers'  Assistant 
Engineers'  Assistant 
Engineering  Draftsman 
Engineering  Draftsman 


PRINTED  IN  TME  HOUSE 
iWr  SEVXRINGHAUS* 


»500 


CITY   OF   CHICAGO 
OFFICE  OF  THE   MAYOR 


WM.   HALE  THOMPSON 
MAYOR 


January  6,  1921. 


To  The  Honorable,  the  City  Council 
of  the  City  of  Chicago. 

Gentlemen: 

At  a  special  session  of  your  honorable  body 
held  on  September  9th,  1919,  I  submitted  a  recom- 
mendation for  the  creation  of  a  Commission  on  Local 
Transportation  to  consider  matters  incident  to 
obtaining  improved  local  transportation  facilities 
for  the  people  of  the  City  of  Chicago  at  a  permanent 
five-cent  fare  through  the  creation  of  a  public  body 
clothed  with  power  to  own,  control  and  operate  a  system 
of  local  transportation  in  a  district  embracing  the 
City  of  Chicago  and  such  portions  of  adjoining 
cities,  villages  and  towns  as  logically  form  a  part 
of  the  metropolitan  district  of  Chicago. 

Your  honorable  body  subsequently  passed  an 
ordinance  authorizing  the  appointment  by  the  Mayor 
of  a  Commission  on  Local  Transportation,  and  there- 
after appropriated  the  sum  of  $250,000.00  for  the 
expenses  of  said  Commission, 


In  December,  1919,  I  appointed  as  such  Commis- 
sion, Hon.  Samuel  A.  Ettelson,  Corporation  Counsel, 
Chairman;  Hon.  Charles  R.  Francis,  Commissioner  of 
Public  Works;  Hon.  John  P.  Garner,  Alderman;  and 
Hon.  P.  H.  Moynihan,  ex-alderman;  all  of  whom  have 
served  without  compensation. 

The  Commission  employed  competent  legal  and 
engineering  staffs  to  make  investigations  covering 
the  legal  and  engineering  problems  involved  in  the 
proposed  plan  of  Peoples'  Ownership  and  Operation 
of  street  railways  at  a  five-cent  fare.  Based  on 
these  investigations  the  Commission  has  submitted 
to  me  their  conclusions  and  recommendations,  as 
required  by  ordinance,  which  are  transmitted  here- 
with. 

A  study  of  the  data  accumulated  by  the  engi- 
neering staff  sustains  my  views,  heretofore  expressed 
to  your  honorable  body,  that  from  engineering  and 
financial  standpoints,  it  is  entirely  feasible  to 
provide  adequate  and  first'  class  transportation  at 
a  permanent  five-cent  fare  through  the  creation  of  a 
Transportation  District  to  be  administered  by  trus- 
tees elected  by  the  people. 

The  engineering  investigation  included  a  thor- 
ough consideration  of  subway  transportation  as  a 
means  of  relieving  congestion  in  the  downtown  or 
so-called  'loop*  district;  the  rerouting  of  cars  on 


surface  lines  now  in  operation;  the  use  of  monorails, 
double-deck  cars  and  loading  platforms  to  avoid  the 
delays  incident  to  the  present  method  of  collecting 
fares  on  the  cars  ;  and  in  addition  the  institution  of 
sweeping  economies  in  operation  which  are  impossible 
under  private  ownership. 

The  attorneys  for  the  Commission  have  prepared 
the  draft  of  a  proposed  bill  for  an  act,  which,  when 
passed  by  the  legislature,  will  permit  the  voters  of 
Chicago  and  vicinity  to  form,  if  they  so  elect,  a 
Transportation  District  which  shall  constitute  a 
separate  municipal  or  public  corporation,  managed  by 
Trustees  elected  by  the  people,  with  power  to  own  and 
operate  street  railway  systems  within  such  Trans- 
portation District.  ^ 

While  the  engineering  investigation  has  been 
of  great  importance  as  showing  the  feasibility  of 
providing  adequate  local  transportation  at  a  five-cent 
fare  through  peoples*  ownership  and  operation,  I 
believe  that  the  immediate  attention  of  the  friends 
and  supporters  of  the  five-cent  fare  should  be 
directed  toward  securing  from  the  Illinois  General 
Assembly,  which  is  now  in  session,  the  necessary 
enabling  legislation,  under  which  the  people  may 
form  such  a  Transportation  District  if  they  so  desire, 
and  without  which  all  consideration  of  engineering 
details  would  be  futile.  ♦, 


I  transmit  herewith  to  your  honorable  body  the 
report  of  the  Commission,  including  a  copy  of  the 
proposed  law  recommended  by  the  Commission  which  will 
be  submitted  to  the  Legislature  as  provided  by  the 
ordinance. 

As  a  means  of  promoting  the  enactment  of  this 
essential  legislation,  I  respectfully  recommend  that 
the  Commission  on  Local  Transportation  be  continued 
for  the  purpose  of  conducting  any  further  investi- 
gations which  may  be  necessary  and  to  present  to 
the  Legislature  and  the  members  and  committees  thereof 
such  detailed  information  as  may  be  required  to  pro- 
mote the  enactment  of  the  enabling  legislation, 

I  am  advised  that  of  the  appropriation  made  to 
defray  the  expenses  of  the  Commission,  approximately 
170,000,00  remains  unexpended,   I  therefore 
recommend  that  such  unexpended  balance  be  re-appro- 
priated in  order  that  so  much  thereof  as  may  be  re- 
quired for  the  purposes  above  indicated  may  be  avail- 
able for  the  use  of  the  Commission,  In  my  opinion, 
there  is  no  public  question  of  more  pressing  im- 
portance than  that  of  securing  for  our  people  relief 
from  the  intolerable  conditions  of  local  transporta- 
tion which  now  prevail  under  private  ownership  and 
operation.  Yours  respectfully. 


Text  of  the  Report  to  the  Mayor 


by  the 


Commission  on  Local  Transportation 


of  the 


City  of  Chicago 


Chicago,  111.,  December  31,  1920. 

Hon.  William  Hale  Thompson,  Mayor, 

City  Hall,  Chicago. 

Dear  Sir : 

The  Commission  on  Local  Transportation  ap- 
pointed by  you  held  its  first  regular  meeting  in  your 
office  on  December  16th,  1919,  all  of  the  Commission 
being  present,  at  which  time  and  place  Commissioner 
Samuel  A.  Ettelson  was  elected  Chairman  of  the 
Commission,  and  thereafter,  the  Commission  com- 
pleted its  organization  by  the  election  of  Mr.  William 
D.  Mcjunkin,  Secretary,  Mr.  Robert  J.  Lyman,  As- 
sistant Secretary,  and  Mr.  Chester  E.  Cleveland, 
Chief  Counsel. 

Subsequently,  upon  the  recommendation  of  the 
Chief  Counsel,  Messrs.  Charles  E.  Ward,  Edward  H. 
Wright  and  William  F.  Mulvihill  were  chosen  as  As- 
sociate Counsel  for  the  Commission,  and  directed  to 
prepare  the  necessary  legislation  required  to  permit 
the  creation  of  Transportation  Districts. 

Quarters  for  the  Commission  were  secured  in  the 
Hotel  Sherman, 


8 

Questionnaires  for  Engineers 

The  following  form  of  questionnaire  was  pre- 
pared and  submitted  to  engineers  who  were  appli- 
cants or  prospective  applicants  for  the  position  of 
Engineer  for  the  Commission : 

The  Commission  on  Local  Transportation, 
desiring  to  recommend  to  Mayor  William  Hale 
Thompson  for  appointment  by  him  an  engineer 
to  undertake  the  technical  work  of  the  Commis- 
sion in  the  development  of  a  permanent  solution 
of  the  local  transportation  problems  confronting 
the  people  of  Chicago,  and  desiring  to  establish 
a  criterion  on  which  to  base  such  recommenda- 
tion, requests  those  competent  and  desiring  to 
serve  to  present  to  the  Commission  a  statement 
of  their  qualifications  and  views  as  herein  out- 
lined. 

(In  replying  to  the  questions  kindly  number 
answers  in  conformity  with  the  following  num- 
bers.) 

(1)  Name. 

(2)  Address. 

(3)  Present  employment. 

(4)  Education  and  degrees  and  member- 
ship in  technical  societies. 

(5)  Detailed  statement  of  experience  and 
employment,  by  years. 

(6)  Record  as  to  responsible  charge  of  en- 
gineering and  construction,  naming  most  im- 
portant works  and  money  value. 


(7)  Special  experience,  if  any,  in  railway 
design,  construction  and  operation. 

(8)  Special  experience,  if  any,  in  electrical 
work,  and  especially  electric  railways  and  sub- 
way construction  and  operation;  also  electro- 
lysis. 

(9)  Special  experience,  if  any,  in  an  execu- 
tive capacity  and  in  assuming  engineering  and 
business  responsibility. 

(10)  Experience  in  valuation  and  appraisal. 

(11)  What  can  you  cite  as  evidence  of  or- 
iginality and  resourcefulness  and  of  ability  to 
grasp  difficult  situations  and  solve  them? 

(12)  State  your  experience,  if  any,  in  the 
analysis  of  the  financial  elements  of  fares,  profit, 
capitalization,  etc. 

(13)  State  your  experience,  if  any,  in  the 
analysis  of  traffic  congestion,  routing  and  ter- 
minals. 

(14)  State  what  study,  if  any,  you  have 
given  to  improved  methods  of  city  railway  con- 
struction, mechanical  equipment  and  operation 
tending  to  sanitary,  quiet,  safe  and  efficient  oper- 
ation. 

(15)  What  study,  if  any,  have  you  given  to, 
and  what  suggestions  can  you  offer  for  practical 
and  advanced  economical  rapid  transit  adapted 
to  the  Chicago  situation? 

(16)  State  what  persons,  firms  and  corpo- 
rations you  have  been  associated  with  and  have 
done  business  for,  during  the  last  fifteen  years. 


10 


(17)  State  which  of  these  persons,  firms 
and  corporations  you  have  just  mentioned  have 
been  at  any  time  connected  or  affiliated  with  pub- 
lic utility  corporations. 

(18)  State  whether  or  not  you  or  any 
person,  firm  or  corporation  with  whom  you  have 
been  connected  has  directly  or  indirectly  done 
any  work  for  or  rendered  any  service  to  any  of 
the  traction  companies. 

(19)  Do  you  consider  yourself  fully  com- 
petent to  prepare  and  present  to  the  Commission 
a  complete  and  comprehensive  report  of  the  char- 
acter and  scope  indicated  in  this  questionnaire? 

(20)  Outline  briefly  your  plan  for  under- 
taking the  work,  staff  required,  time  required, 
and  the  terms  and  conditions  on  which  you 
would  serve. 

(21)  State  what,  if  any,  staff  or  organiza- 
tion you  have  now  available  for  this  work. 

Engineer  George  W.  Jackson  Employed 

After  careful  consideration  of  the  many  applica- 
tions received,  and  a  series  of  public  hearings  for  the 
examination  of  applicants  for  appointment  as  Engi- 
neer, the  Commission  on  February  6th,  1920,  author- 
ized its  chairman  to  negotiate  with  Mr.  George  W. 
Jackson  regarding  the  cost  to  prepare  and  furnish 
sketches  and  estimates  covering  the  cost  of  construc- 
tion of  both  two  and  four  track  subways  under  vari- 
ous downtown  streets  and  to  act  as  engineer  for  the 
Commission. 


11 

Thereafter  on  February  11th  the  Commission  en- 
tered into  an  agreement  with  Mr.  George  W.  Jackson 
to  serve  as  Engineer  on  the  following  terms,  subject 
to  the  approval  of  the  City  Council:  A  retainer  of 
$5,000.00  and  compensation  at  the  rate  of  $150.00  per 
day,  and  an  additional  allowance  not  to  exceed  15% 
to  cover  office  expense,  overhead,  use  of  engineering 
appliances,  stationery,  etc.,  over  and  above  the  cost  of 
salaries  that  might  be  paid  to  engineers  and  others 
of  the  engineering  staff,  it  being  understood  that  the 
retainer  of  $5,000.00  was  based  upon  the  fact  that 
during  the  past  twenty  years  Mr.  Jackson  has  been 
engaged  in  the  consideration  of  and  construction  of 
subways  and  other  public  and  private  works  in  Chi- 
cago, in  the  process  of  which  he  has  gathered  a  mass 
of  data,  of  more  value  than  the  retainer  specified,  and 
that  all  of  the  plans  which  he  has  heretofore  prepared 
and  the  results  of  all  of  the  studies  which  he  has  made 
in  this  field  would  be  immediately  available  for  the 
use  of  the  Commission.  These  data,  gathered  at 
great  expense  and  representing  years  of  study  and 
labor,  were  thus  made  available  to  the  Commission 
without  additional  cost.  This  agreement  was  con- 
curred in  by  the  City  Council. 

Resolutions:    re   Public   Utilities  Commission 

On  February  20th,  the  following  resolutions 
were  unanimously  adopted,  all  of  the  Commissioners 
being  present : 

"WHEREAS,  The  Supreme  Court  of  the 
State  of  Illinois  handed  down  a  decision  on  Feb- 


12 


ruary  18,  1920,  to  the  effect  that  the  City  of  Chi- 
cago has  no  control  or  authority  over  the  traction 
lines  on  its  streets  insofar  as  the  question  of  the 
rate  of  fare  is  concerned;  and 

''WHEREAS,  It  is  held  in  such  decision 
that  the  whole  power  of  fixing  rates  in  the  City 
of  Chicago  is  in  the  State  Public  Utilities  Com- 
mission, notwithstanding  the  fact  that  the  trac- 
tion companies  in  1907  contracted  with  the  City 
of  Chicago  to  furnish  transportation  for  a  period 
of  twenty  years  for  a  five  cent  fare;  and 

"WHEREAS,  Said  Public  Utilities  Com- 
mission has  shown  by  its  rulings  in  favor  of  the 
public  utility  corporations  and  against  the  in- 
terests of  the  people,  that  it  is  vain  to  look  for 
relief  to  that  Commission ;  and 

"WHEREAS,  The  Supreme  Court  of  Illi- 
nois at  its  present  term,  in  another  case,  held  that 
the  State  Public  Utilities  Commission  has  no 
jurisdiction  over  public  utilities  owned  and  oper- 
ated by  municipalities  in  the  State  of  Illinois, 
therefore,  be  it 

"RESOLVED,  That  arrangements  be  made 
to  appeal  to  the  General  Assembly  of  the  State 
of  Illinois  for  legislation  authorizing  the  people 
to  create  a  Transportation  District  or  new  muni- 
cipal corporation,  if  they  so  elect,  for  ownership 
and  operation  of  street  railway  systems  at  a  five 
cent  fare,  in  accordance  with  what  is  known  as 
the  "Thompson  Plan";  be  it  further 


13 


"RESOLVED,  That  to  expedite  the  carry- 
ing out  of  this  program,  the  Chief  Counsel  of  this 
Commission  be,  and  he  is  hereby  authorized  and 
directed  to  employ  such  additional  legal  aid  or 
assistance  as  he  may  deem  necessary  to  digest 
and  prepare  at  the  earliest  possible  date,  the 
legislation  required  to  give  the  people  of  Chicago 
power  to  manage  their  own  traction  affairs 
through  trustees  elected  by  popular  vote." 

Open  Meetings  of  Commission 

In  accordance  with  the  request  of  Your  Honor, 
it  has  been  the  policy  of  the  Commission  to  hold  all 
meetings  open  to  the  public  and  to  invite  persons  in- 
terested in  the  local  transportation  problem  to  ap- 
pear before  the  Commission  with  suggestions  and 
criticisms  of  the  plans  under  consideration  from  time 
to  time.  Many  persons  availed  themselves  of  the 
opportunity  to  present  their  views  to  the  Commission. 

The  Commission  has  accumulated  a  mass  of  in- 
formation, including  maps  of  possible  routes  of  sub- 
ways, plans  for  structures  and  construction,  data 
showing  population  and  travel  on  lines  of  local  trans- 
portation, tables  showing  the  gradual  decrease  in 
speed  of  surface  cars,  and  all  other  related  subjects 
connected  with  the  increasingly  intricate  problem  of 
local  transportation.  These  studies  and  investiga- 
tions would  easily  fill  a  large  volume,  the  contents  of 
which  would  be  of  interest  chiefly  to  engineers  and 
technical  students  of  traction  problems. 


14 

We  have  acted  on  the  theory  that  we  were 
charged  with  the  duty  of  working  out  a  practical 
method  of  local  transportation  for  the  people,  rather 
than  the  accumulation  of  ponderous  reports  and  doc- 
uments that  would  be  filed  away  and  result  in  nothing 
tangible. 

Function  to  Investigate  Only 

We  realize  that  it  is  not  our  function  to  formu- 
late fixed  plans  and  methods  of  local  transportation 
to  bind  or  hamper  the  trustees  to  be  elected  by  the 
people.  Therefore  we  have  personally  and  through 
our  engineers  investigated  all  the  various  plans  and 
methods  which  we  have  been  able  to  discover  that 
might  be  utilized  to  improve  local  transportation  and 
restore  the  five  cent  fare.  It  would  appear  unwise 
for  us  to  select  any  one  or  any  combination  of  these 
plans  and  methods  as  a  cure-all  to  be  accepted  by  the 
trustees. 

We  have  collected  a  vast  amount  of  material 
which  will  be  available  in  working  out  the  concrete 
plan  or  system  that  may  be  adopted.  We  have  borne 
in  mind  that  the  building  of  a  new  system  of  trans- 
portation, whether  based  upon  the  present  system  or 
independent  of  it,  will  of  necessity  be  an  evolution  in 
practice  rather  than  a  theoretical  creation.  It  has 
been  our  task  to  determine  what  is  feasible,  practical 
and  usable  at  the  present  time;  it  will  be  for  the 
trustees  hereafter  to  be  elected  to  determine  what  is 
the  best  at  that  time  and  to  build  their  sytem  accord- 
ingly.   It  has  been  our  business  to  ascertain  and  de- 


15 


termine  whether  or  not  the  plan  proposed  by  Your 
Honor  is  feasible,  practical  and  desirable.  After  a 
careful  investigation,  we  are  satisfied  that  it  is  feas- 
ible, practical  and  desirablie ;  and  we  may  add  that,  in 
our  opinion,  it  is  absolutely  necessary  to  protect  the 
welfare  of  the  people. 

Two  Principal  Considerations 

Our  investigation  naturally  divided  itself  into 
two  elements:  (1st)  Is  people's  ownership  and  oper- 
ation feasible,  practical  and  desirable ;  and  (2nd)  Will 
a  permanent  five  cent  fare  be  guaranteed  thereunder? 
While  these  elements  are  closely  related  to  each 
other,  they  are  not  necessarily  dependent  upon  each 
other,  and  are  capable  of  separate  consideration.  We 
shall  take  them  up  in  the  order  above  set  forth. 

Is  people's  ownership  and  operation  feasible, 
practical  and  desirable? 

In  consideration  of  this  question  we  want  it  un- 
derstood that  we  are  not  discussing  the  question  of 
municipal  or  public  ownership  of  public  utilities  as  a 
general  proposition;  but  that  we  are  considering  the 
question  of  people's  ownership  of  the  street  railway 
system  under  concrete  circumstances  presented. 

People's  Ownership   Not   New  Idea 

There  always  has  been  public  ownership  of  pub- 
lic utilities  in  this  state.  Sometimes  it  has  been  own- 
ership and  operation  of  waterworks,  as  in  Chicago. 
Sometimes  it  has  been  of  gas  plants;  sometimes  of 


16 

electric  lighting  and  heating  plants;  sometimes  of 
telephone  systems,  and  so  on.  The  principle  of  public 
ownership  and  operation  of  public  utilities  has  long 
been  recognized  as  correct,  and  the  only  question  has 
been  as  to  what  utilities  it  should  be  applied.  By 
the  Mueller  Act  and  the  Public  Utilities  Act,  the 
Illinois  legislature  expressly  recognized  that  public 
ownership  and  operation  of  street  railways  is  correct 
in  principle. 

Let  it  also  be  understood  that  we  are  dealing  only 
with  street  railways.  We  are  not  dealing  with  com- 
mercial railroads.  That  street  railways  are  wholly 
distinct  and  different  from  commercial  railroads  is 
clearly  recognized  in  our  Constitution,  in  our  statutes 
and  in  the  decisions  of  our  courts. 

Street  Car  Lines  as  Highways 

Street  railways  are  essentially  a  part  of  the 
streets,  almost,  if  not  quite  as  much  so,  as  the  pave- 
ments and  sidewalks.  As  the  public  provides  boule- 
vards and  pavements  for  vehicular  traffic,  and  side- 
walks for  pedestrian  traffic,  so  also  it  may  well  pro- 
vide street  railways  for  the  transportation  of  the  peo- 
ple to  and  from  their  work,  business  and  pleasure. 
No  reasonable  man  will  deny  that  comfortable  and 
expeditious  transportation  of  the  people  by  means  of 
the  street  railways  will  greatly  promote  the  public 
welfare. 

The  history  of  the  street  car  companies  in  Chi- 
cago, under  private  ownership,  has  been  one  of  cor- 
rupton  and  a  continuous  effort,  by  fair  means  or  foul, 


17 

to  exploit  the  people  in  the  interest  of  the  companies. 
This  history  is  so  well  known  that  it  would  serve  no 
useful  purpose  to  go  into  detail  here.  We  shall  there- 
fore come  at  once  to  the  1907  ordinance  contracts,  a 
consideration  of  which  will  demonstrate,  not  only  the 
feasibility  and  practicability  of  the  plan  for  people's 
ownership,  but  also  its  absolute  necessity. 

People's  Ownership  a  Necessity 

These  ordinance  contracts  contain  provisions 
purporting  to  authorize  the  City  of  Chicago  or  its 
licensee  to  purchase  the  lines  upon  terms  and  condi- 
tions therein  prescribed ;  and  the  Mueller  Law,  under 
the  authority  of  which  such  ordinance  contracts  were 
largely  entered  into,  purported  to  authorize  the  City 
to  issue  certificates  on  which  to  raise  money  to  pay 
for  the  lines.  But  the  Supreme  Court  held  that  such 
certificates  constitute  indebtedness  of  the  City  issu- 
ing them ;  that  if  the  City  of  Chicago  issued  such  cer- 
tificates it  would  exceed  the  limit  of  its  bonded  in- 
debtedness ;  and  that  therefore  the  city  could  not  issue 
such  certificates.  This  leaves  the  city  without  ade- 
quate means  of  raising  sufficient  money  to  purchase 
the  lines;  and  hence  the  provisions  of  the  ordinances 
for  the  purchase  of  the  lines  are,  so  far  as  the  city  is 
concerned,  meaningless. 

Practically,  there  is  not  a  possibility  of  the  city 
getting  a  licensee  to  purchase  these  lines,  and  the  city 
itself  could  not  raise  the  money  required  to  purchase 
the  lines. 


18 
$85,000,000  "Water"  in  Surface  Lines  Valuations 

The  purchase  price  under  the  contract  ordin- 
ances, about  $160,000,000,  contains  items  aggregating 
millions  of  dollars  which  represent  no  property  at  all. 
The  officials  of  the  Chicago  Surface  Lines,  in  1917, 
testified  that  there  were  then  included  in  the  purchase 
price  "$85,000,000  or  $90,000,000  that  is  not  repre- 
sented by  any  property  at  all." 

Therefore,  we  find  that  it  is  certain  that  the  city 
will  never  be  able  to  purchase  said  properties  under 
said  contract  ordinances ;  and  that  it  is  equally  certain 
that  the  city  will  never  be  able  to  find  a  licensee  who 
will  purchase  the  properties  under  the  ordinances. 
Consequently,  the  city  will  of  necessity  come  to  the 
termination  of  said  ordinances  with  the  present  com- 
panies absolute  masters  of  the  situation,  and  the  peo- 
ple will  be  powerless  unless  something  be  done. 

"Joker"  in  1907  Traction  Ordinances 

In  connection  with  the  provisions  in  the  contract 
ordinances  for  the  purchase  of  the  properties  by  the 
city  or  its  licensee  will  be  found  the  following: 

"and  in  case  such  reserved  right  of  purchase  be 
not  exercised  by  the  said  City  or  its  licensee  and 
the  City  shall  grant  a  right  to  another  company 
to  operate  a  street  railway  in  the  streets  and 
parts  of  streets  constituting  the  said  street  rail- 
way system  of  the  Company,  such  new  company 
shall  be  required  to  and  shall  purchase  and  take 
over  the  said  street  railways,  property  and  rights 


19 


of  the  Company  at  or  after  February  first,  1927, 
upon  the  same  terms  upon  which  the  said  City 
might  then  purchase  and  take  them  over." 

A  more  vicious  joker  was  never  introduced  in  an 
ordinance.  The  statutes  provide  that  a  grant  of 
rights  in  the  streets  to  street  railway  companies  shall 
be  limited  to  20  years,  but  here  we  have  a  sinister  at- 
tempt to  give  to  those  companies  a  perpetual  fran- 
chise. According  to  the  terms  of  this  provision,  the 
companies  can  continue  to  operate  their  lines  in  the 
streets  of  the  city  until  the  city  or  its  licensee  pays  to 
them  the  exorbitant  purchase  price  built  up  under 
the  ordinances ;  and,  as  we  have  seen,  there  is  no  pos- 
sibility of  the  city  or  any  such  licensee  ever  paying 
such  purchase  price.  So  that  the  city  is  helpless  and 
the  present  companies  can  remain  on  the  streets  for- 
ever if  these  ordinances  shall  hold.  Even  if  the  courts 
should  finally  hold  that  the  provision  above  quoted  is 
illegal,  fraudulent  and  void,  still,  as  we  have  seen,  the 
city  would  be  in  no  position  financially  to  acquire  and 
operate  a  street  railway  system,  because  of  the  consti- 
tutional limitation  of  municipal  indebtedness. 

New  Public  Body  Indispensible 

So,  unless  the  present  companies  are  to  be  left  in 
undisputed  control,  and  permitted  to  continue  their 
operations  as  they  have  in  the  past,  giving  poor  serv- 
ice and  charging  excessive  rates  contrary  to  their  con- 
tracts and  in  utter  defiance  and  disrespect  of  the 
rights  of  the  people,  it  is  obvious  that  the  new  trans- 
portation district  advocated  by  you  is  an  absolute 
necessity. 


20 

The  question  then  recurs  whether  under  this  plan 
the  people  could  be  given  five  cent  fares.  Our  investi- 
gation leads  us  to  the  conclusion  that  there  is  no 
doubt  that  it  can  be  done. 

Surface  Lines  Earned  Millions  at  Nickle  Fare 

The  earnings  of  the  Chicago  Surface  Lines  under 

the  five  cent  fare  from  February  1,  1907  to  August  1, 

1919  were  as  follows: 

10%  of  all  items  added  to  capital  ac- 
count for  contractors  profit  retained 
by  the  companies  and  not  paid  to 
any  contractor  but  added  to  capital 
account $     8,297,865.45 

5%  of  all  items  added  to  capital  ac- 
count,  for   brokerage,   retained   by        * 
the  companies  and  not  paid  to  any 
broker  but  added  to  capital  account       4,156,937.70 

5%  of  the  capital  account  drawn  out 

each  year  by  the  companies 76,933,780.24 

45  %  of  the  net  divisible  receipts  drawn 

out  each  year  by  the  companies.  ...      19,181,717.03 


Total $108,570,300.42 

For  the  years  beginning  February  1,  1907,  down 
to  and  including  January  31,  1919,  the  foregoing  are 
the  figures  furnished  to  the  City  Comptroller  by  the 
companies.  The  amounts  for  the  period  beginning 
February  1,  1919  and  ending  August  1,  1919  are  es- 
timated by  the  comptroller  and  are  substantially  if 
not  absolutely  accurate. 


21 

In  addition  to  the  foregoing  sum  of.  .$108,570,300.42 
made  by  the  companies  from  the  five 
cent  fare  during  the  period  above 
mentioned,  the  companies  further 
made  a  profit  w^hich  they  paid  to 
the  city  for  its  55%  of  the  net  divis- 
ible receipts    22,730,242.92 


$131,300,543.34 


In  addition  to  the  foregoing  the  com- 
panies had  up  to  January  31,  1919 
accumulated  in  the  renewal  fund 
provided  for  by  the  ordinance  over 
all  expenditures  for  renewals,  the 
net  sum  in  cash  which  they  then  had 
on  hand  of 9,258,932.31 


$140,559,475.65 


Prosperity  Concealed  by  Secret  Books 

No  one  outside  the  inner  circle  of  the  traction  in- 
terests knows  what  it  has  ^ost  the  Chicago  Surface 
Lines  to  give  street  car  service  in  Chicago.  Their 
financial  affairs  are  recorded  in  a  private  set  of  books 
to  which  the  city  has  access  only  to  a  very  limited 
extent.  The  fact  that  they  keep  these  secret  books 
and  refuse  to  let  the  people  know  what  they  contain, 
raises  a  presumption  that  they  contain  entries  which 
if  known  would  be  very  prejudicial  to  their  claims. 
We  believe  from  evidence  brought  out  before  the 
Public  Utilities  Commission  that  the  companies  have 


22 


used  money  running  into  the  millions  for  improper 
purposes,  and  that  proof  of  this  could  be  obtained  in 
their  secret  books,  if  available  for  examination. 

With  all  such  unnecessary  and  improper  expenses 
eliminated,  we  are  convinced  that  the  five  cent  fare 
would  not  only  pay  all  operating  expenses,  but  would 
provide  a  sinking  fund  to  meet  and  pay  the  entire  cost 
of  the  street  railways. 

Voluminous  Report  Considered 

It  was  the  plan  of  your  Commission  to  make  a 
voluminous  report  including  much  of  the  information 
gathered  and  plans  prepared  by  our  engineering  staff, 
but,  at  the  suggestion  of  Your  Honor,  we  have 
omitted  from  our  report  this  non-essential  mass  of 
detail,  to  the  end  that  our  conclusions  and  recom- 
mendations based  on  the  studies  and  investigation  of 
the  legal  and  engineering  staffs  might  not  be  ob- 
scured in  the  public  mind,  through  over-emphasis  of 
some  unimportant  details  by  the  opponents  of  peo- 
ple's ownership. 

If  the  City  Council  should  desire  to  have  the 
engineering  studies  and  the  briefs  of  the  attorneys 
printed,  there  are  sufficient  funds  left  in  the  appropri- 
ation to  do  so,  but  your  Commission  is  of  the  opinion 
that  such  expenditure  would  be  unwise. 

We  were  further  inclined  to  this  action  because 
of  the  fact  that  no  plan  or  plans,  however  wisely  con- 
ceived, would  be  binding  on  the  trustees  of  the  Trans- 
portation District  when  organized,  and  would  serve 
now  only  to  distract  attention  from  the  prime  essen- 


23 


tial,  namely,  the  enactment  of  a  law  by  the  General 
Assembly  of  the  State  of  Illinois  permitting  the  peo- 
ple of  Chicago  to  vote  on  the  question  of  whether  they 
desire  people's  ownership  and  operation  of  street  cars 
at  a  permanent  five-cent  fare.  Without  such  a  law 
and  without  such  a  vote  of  the  people,  it  would  be 
folly  to  discuss  seriously  whether  or  not  there  should 
be  subways  and  when  and  where  they  should  be  con- 
structed, whether  there  should  be  one-story  or  two- 
story  cars,  and  other  details  of  administration,  over 
which  we  can  exercise  no  jurisdiction,  but  which 
would  be  solely  in  the  control  of  the  trustees  to  be 
elected  by  the  people,  and  to  whom,  under  your  plan, 
the  district  officials  would  be  directly  responsible. 

People's  Ownership  Endorsed  by  Chicago  Voters 

Public  ownership  and  operation  of  street  car 
lines  is  not  a  new  idea  of  the  people  of  Chicago,  who 
have  repeatedly  endorsed  the  proposition  by  their 
votes.  Constitutional  limitations  have,  up  to  this 
time,  made  it  impossible  to  bring  about  the  accom- 
plishment of  their  desire  to  own  and  operate  their 
local  transportation  system. 

The  plan  proposed  by  Your  Honor,  commonly 
known  as  the  "Thompson  Plan  for  Peoples'  Owner- 
ship and  Operation  of  Street  Cars  at  a  5-Cent  Fare," 
if  adopted,  would  obviate  all  the  difficulties  which 
have  been  heretofore  experienced  by  the  people  of 
Chicago,  and  place  it  within  their  power  to  own  and 
operate  their  lines  of  local  transportation,  if  they  so 
desire. 


24 

Opposition  to  be  Expected 

It  is  to  be  expected  that  this  progressive  proposal 
will  meet  with  determined  opposition  from  the  pri- 
vate corporations  which  own,  control  and  operate 
various  public  utilities,  and  which,  through  their 
monopolistic  control,  have  been  able  to  exploit  the 
public;  Secondly,  from  the  interests  which  are  re- 
sponsible for  the  intolerable  service  furnished  by  our 
present  local  transportation  lines,  including  the  high- 
salaried  officials  of  the  traction  companies,  the 
bankers  and  brokers  and  newspaper  owners  and 
editors  who  in  one  way  or  another  have  acquired  large 
blocks  of  the  watered  stock  and  who  desire  to  con- 
tinue taking  toll  out  of  the  pockets  of  the  people  in 
the  form  of  excessive  car  fares  levied  in  violation  of 
contracts  between  the  people  and  the  traction  com- 
panies. 

After  a  thorough  study  of  the  entire  traction 
situation  in  Chicago  as  it  relates  to  local  transporta- 
tion, your  Commission  is  convinced  that  first-class, 
adequate  service  can  be  provided  through  Peoples] 
ownership  and  operation  at  a  permanent  five-cent 
fare. 

We  submit  herewith  a  communication  from  the 
Engineering  department  bearing  on  this  subject ;  also 
a  proposed  bill  for  an  act  to  be  introduced  in  the 
General  Assembly,  which  we  respectfully  recommend 
that  you  transmit  to  the  General  Assembly  in  accord- 
ance with  the  provisions  of  the  ordinance  creating 
this  Commission. 


25 

In  conclusion,  permit  us  to  assure  you  of  our  ap- 
preciation of  your  confidence  in  committing  this  in- 
vestigation to  our  care,  and  also  for  the  helpful  sug- 
gestions and  invaluable  cooperation  we  have  had  from 
you  during  the  time  we  have  been  engaged  in  the  task 
assigned,  which  we  have  gladly  performed  without 
compensation  other  than  the  knowledge  that  we  were 
contributing  in  some  measure  to  the  consummation  of 
a  plan  which,  when  put  in  operation,  as  we  confidently 
believe  it  will  be,  will  add  another  to  your  many  great 
achievements  in  behalf  of  the  people  of  Chicago. 

Respectfully  submitted, 

SAMUEL  A.  ETTELSON,  Chairman, 
CHARLES  R.  FRANCIS, 
JOHN  P.  GARNER, 
PATRICK  H.  MOYNIHAN. 


ENGINEERING  DEPARTMENT 

Commission  on  Local  Transportation 


Chicago,  111.,  December  31,  1920. 

To  the  Commission  on  Local  Transportation  of  the 
City  of  Chicago. 

Gentlemen : 

Pursuant  to  your  instructions  imparted  to  me  as 
Engineer  for  your  Commission,  I  have  completed  an 
investigation,  as  thorough  as  could  be  made  in  the 
time  available,  with  a  view  to  ascertaining  the  feasi- 
bility and  desirability  of  the  plans  for  People's  owner- 
ship and  operation  of  the  Chicago  surface  lines  at  a 
five-cent  fare  which  your  Commission  is  seeking  to 
materialize.  In  making  this  investigation  I  have  also 
considered  efficient  means  for  relieving  the  insuffer- 
able congestion  and  bringing  improvement  to  the 
service,  now  so  miserable,  on  the  local  transportation 
lines  of  this  city,  and  have  data  on  hand  in  support  of 
my  recommendations. 

All  Prior  Investigations   Considered 

This  statement,  while  brief,  is  based  upon  knowl- 
edge developed  through  the  study  of  material  hereto- 
fore gathered  by  the  various  commissions,  engineers 
and  others,  including  myself,  covering  practically  all 
prior  investigations  and  reports  upon  the  local  trans- 
portation problem,  and  includes  observations  upon 
certain  financial  and  economic  aspects  of  the  subject. 

I  have  eliminated  all  possible    detail   from   this 


27 

communication,  realizing  that  there  is  an  endless 
amount  of  same  calling  for  discussion  which  must 
necessarily  come  up  in  open  hearings  before  the 
bodies  called  upon  to  legislate  in  behalf  of  your  plans, 
and  I  will  gladly  hold  myself  in  readiness  to  appear 
with  my  assistants  whenever  and  wherever  desired 
for  more  detailed  discussion  of  the  matters  touched 
upon  herein. 

It  is  a  great  satisfaction  to  me  that,  as  a  result  of 
the  investigations  made  by  the  engineering  staff 
under  my  direction,  I  can  now  state  to  your  Commis- 
sion that  the  plan  suggested  by  Mayor  William  Hale 
Thompson  is  feasible  and  that  under  it  the  people  can, 
if  they  desire,  own  and  operate  successfully  street 
cars  in  Chicago  at  a  permanent  five-cent  fare.  I  am 
further  able  to  say  that  such  plan  could  be  put  into 
execution  without  adding  any  permanent  burdens  to 
the  tax  payers  of  Chicago,  and,  in  my  opinion,  the 
Transportation  District  contemplated  in  such  plan 
would,  when  legally  and  efficiently  organized,  give 
the  people  of  Chicago  better  local  transportation  than 
they  have  ever  heretofore  enjoyed. 

Transportation  planned  for  Ten  Million  Population 

The  organization  and  operation  of  the  proposed 
Transportation  District  would  provide  a  transporta- 
tion system  for  the  City  of  Chicago  and  environs,  not 
only  adequate  for  immediate  requirements,  but  of 
such  potential  capacity  as  to  meet  the  needs  of  a 
population  of  ten  million  people,  and  would  double  at 
once  the  capacity  of  the  surface  lines  to  transport  peo- 
ple into  and  out  of  the  so-called  loop  district. 


28 


The  future  development  of  our  city  efficiently 
can  only  be  advanced  as  adequate,  safe  and  rapid 
transit  facilities  are  established  and  extended  in  har- 
mony with  other  plans  for  the  city's  growth  and  bet- 
terment. The  residents  of  the  numerous  thickly  pop- 
ulated sections  of  the  metropolitan  district  of  Chi- 
cago, as  well  as  visitors,  need,  and  should  have  quick, 
cheap  and  convenient  transportation  to  all  points  be- 
tween the  manufacturing  and  industrial  districts,  the 
various  railroad  terminals,  the  hotels  and  amusement 
places  and  the  home  sections  of  the  city.  The  con- 
templated zoning  of  the  city  into  business  and  resi- 
dential sections  will  make  this  even  more  imperative. 
No  satisfactory  zoning  system  can  be  planned  and 
maintained  without  a  concurrent  vast  improvement 
in  local  transportation  facilities. 

Present  Conditions  Have  Become  Intolerable 

All  sections  of  ourcity  are  suffering  through  in- 
ferior traction  service  and  the  outlying  districts  par- 
ticularly through  the  failure  of  the  traction  companies 
to  make  proper  and  necessary  extensions  and  every 
line  of  local  travel  is  overtaxed,  especially  during  the 
rush  hours,  to  such  an  extent  that  conditions  have 
become  intolerable. 

The  1907  contract  ordinances  under  which  the 
Chicago  Surface  Lines  are  operating  in  the  streets  of 
the  city  will  expire  in  1927  if  not  sooner  terminated. 
Unless  urgent  measures  be  adopted,  the  city  will  at 
that  time  be  confronted  with  the  worst  transportation 
conditions  in  its  history.    It  is  therefore  the  part  of 


29 

wisdom  to  make  sure  now  that  the  city  will  not  be 
more  helpless  in  1927  than  it  was  in  1907  in  this 
regard. 

Companies  Exact  High  Rates  For  Poor  Service 

The  present  conditions  are  mainly  due  to  over- 
capitalization upon  the  part  of  the  companies  and 
their  efforts  to  maintain  unwarranted  values  on  their 
properties  and  to  make  their  lines  earn  dividends  on 
inflated  valuations  by  taking  out  of  the  pockets  of  the 
people  the  largest  possible  amount  of  money  for  the 
least  possible  amount  of  service. 

I  firmly  believe,  after  thorough  consideration  of 
traction  history  in  Chicago  and  exhaustive  study  of 
the  engineering  and  financial  problems  involved,  that 
the  most  promising  and  practical  method  advanced 
for  the  right  solution  of  this  question  is  the  plan  ad- 
vocated by  Mayor  William  Hale  Thompson  for  Peo- 
ple's Ownership  and  Operation  of  Street  Car  Lines  at 
a  permanent  five-cent  fare  through  trustees  elected  by 
the  people,  which  contemplates  efficient  and  honest 
economical  administration  devoid  of  extravagance 
and  profit,  instead  of  the  gross  charges  reflected  in 
inflated  valuations,  dividends  on  watered  stock  and 
numerous  ill-advised  expenditures  carried  under  pri- 
vate ownership  and  operation  which  necessitate  ex- 
orbitant fares  and  the  persistent  violation  of  con- 
tractual agreements. 

My  recommendations  are  general,  insofar  as  this 
statement  is  concerned,  and  should  be  considered  as 
advisory  to  yourselves  and  to  the  officials  of  the  pro- 
posed Transportation  District  when  created,  as  I  real- 


30 

ize  fully  that  your  Commission  is  not  empowered  to 
put  plans  into  operation  and  can  only  act  in  a  recom- 
mendatory capacity  toward  doing  so. 

How  Service  Could  Be  Improved 

The  engineering  features  to  be  considered,  of 
course,  involve  subway  construction  at  least  to  the 
initial  extent  of  serving  congested  areas  with  the  pos- 
sibilities of  sufficient  extensions  to  meet  the  needs  of 
the  future.  Subway  construction,  however,  is  not 
vitally  essential  to  the  success  of  the  Mayor's  plan, 
but  can  be  combined  with  it  harmoniously  and  prac- 
tically at  any  time.  The  re-routing  of  surface  trac- 
tion lines  in  the  downtown  business  section  under 
plans  whereby  200,000  passengers  per  hour  could  be 
brought  into  and  taken  out  of  the  loop,  as  compared 
with  100,000  passengers  per  hour  under  the  present 
service.  An  increase  in  the  average  speed  of  sur- 
face cars  accomplished  through  economies  of  rout- 
ing and  operation  will  bring  perceptible  relief,  and  the 
use  of  double-deck  street  cars  and  loading  platforms 
for  collecting  fares,  thus  increasing  capacity  and 
eliminating  the  delay  occasioned  by  payment  of  fares 
on  the  cars  will  bring  still  greater  relief. 

The  foregoing  require  detail  discussion,  together 
with  the  submission  of  maps  and  plans,  and,  in  my 
opinion,  can  be  consummated  with  the  greatest  ex- 
pediency under  the  Thompson  plan  for  People's  Own- 
ership and  Operation,  whereas  under  private  owner- 
ship and  operation  and  its  schemes  of  exploitation 
progress  will  be  blocked  at  every  turn. 


31 

Economical  Management  Could  Save   Millions 

Economies  in  financial  operation  seem  limitless 
when  estimated  on  the  basis  of  extremes  incident  to 
the  practices  of  private  capital.  My  investigations, 
while  of  an  engineering  character,  would  be  incom- 
plete if  I  did  not  advise  you  of  the  financial  savings 
which  I  feel  can  be  accomplished  under  People's  own- 
ership and  operation  as  in  no  other  way.  I  therefore 
submit  a  memorandum  of  daily  expense  which  private 
operation  has  entailed  and  which  has  been  borne  by 
the  car-riding  public  and  which  can  be  saved  under 
People's  ownership  and  operation.  The  figures  upon 
which  this  aggregate  is  computed  and  the  items  in- 
cluded in  same  are  based  upon  an  accurate  knowledge 
of  the  traction  business.  I  am  prepared  to  furnish 
information  and  facts  in  verification  of  them  which 
will  satisfy  the  public  mind  and  legislative  authorities 
that  surface  transportation  lines  can  and  should 
furnish  adequate  first-class  service  at  a  five-cent  fare. 

Some  Suggested  Savings  in  Expense 

The  daily  saving  in  expense  referred  to  will  total, 
conservatively  estimated,  $40,000.00  per  day,  which, 
computed  on  the  basis  of  three  hundred  days  yearly, 
will  equal  an  annual  saving  of  $12,000,000.00.  In- 
cluded in  this  estimate  are  the  following  items : 

Elimination  of  the  present  Board  of  Supervising 
Engineers  and  the  cost  of  service  and  rate  investiga- 
tions to  the  companies  and  the  city  by  the  Public 
Utilities  Commission. 


32 

Discontinuance  of  the  employment  of  detectives 
and  spotters  through  the  sale  of  tickets  to  passengers 
before  entering  cars. 

Gain  in  revenue  which  will  accrue  through  the 
sale  of  tickets  instead  of  the  payment  of  cash  fares. 

Saving  on  payrolls  of  employees  replacing 
switches  and  making  repairs  and  renewals  of  track- 
age, which  are  now  exorbitant. 

Saving  in  expense  of  operation  by  maintaining 
an  average  speed  of  twelve  miles  per  hour  instead  of 
ten  miles  per  hour,  the  present  average. 

Saving  by  operating  cars  by  the  loop  system  in 
the  downtown  district  and  at  a  number  of  terminals. 

Saving  of  revenue  now  lost  on  account  of 
crowded  condition  of  cars,  through  lack  of  sufficient 
equipment  and  facilities. 

Saving  of  unnecessary  overhead  expense,  costs  of 
administration,  lawyers'  fees,  legal  expenses,  and 
lobbying. 

Generation  of  their  own  power  by  People's  lines, 
instead  of  purchase  of  same  from  private  generators 
and  distributors. 

Saving  in  purchases  of  equipment  and  supplies 
in  open  competition,  instead  of  from  concerns  in 
which  owners  of  traction  capital  are  interested. 

Respectfully  submitted, 

'GEORGE  W.  JACKSON, 

Engineer. 


Proposed  Enabling  Legislation 


A  BILL  FOR 

An  act  to  provide  for  the  creation  of  local  trans- 
portation districts ;  for  the  election  of  trustees  of  such 
districts  by  the  legal  voters  thereof;  for  the  acquisi- 
tion by  such  transportation  districts  of  a  system  or 
systems  of  local  transportation,  by  condemnation, 
lease,  purchase,  construction  or  otherwise,  and  for  the 
operation  thereof  under  direction  of  trustees  so 
elected,  and  to  provide  for  the  raising  of  revenue 
therefor. 

Sec.  1.  BE  IT  ENACTED  BY  THE  PEOPLE 
OF  THE  STATE  OF  ILLINOIS,  REPRE- 
SENTED IN  THE  GENERAL  ASSEMBLY:  That 
v^henever  any  area  of  contiguous  territory  shall  con- 
tain one  or  more  incorporated  cities,  tow^ns  or  vil- 
lages, and  shall  be  so  situated  that  the  maintenance 
of  a  common  transportation  system  or  systems  v^dll 
conduce  to  the  health,  comfort,  welfare,  convenience 
or  safety  of  the  public,  the  same  may  be  incorporated 
as  a  transportation  district  under  this  act,  in  the  man- 
ner following : 

Any  five  thousand  (5,000)  legal  voters  resident 
within  the  limits  of  such  proposed  transportation  dis- 
trict may  petition  the  county  judge  of  the  county  in 
which  the  larger  part  of  said  territory  shall  be 
situated,  to  cause  the  question  to  be  submitted 
to  the  legal  voters  of  such  proposed  district,  whether 


34 

they  will  organize  as  a  transportation  district  under 
this  act.  Such  petition  shall  be  addressed  to  said 
county  judge,  and  shall  contain  a  definite  descrip- 
tion of  the  territory  proposed  to  be  included  in  such 
district ;  Provided,  however,  that  no  territory  shall  be 
included  in  more  than  one  transportation  district 
under  this  act. 

Upon  the  filing  of  such  petition  in  the  office  of 
the  county  clerk  of  the  county  in  which  the  larger 
part  of  such  territory  is  situated,  it  shall  be  the  duty 
of  the  county  judge,  of  said  county,  to  call  to  his  as- 
sistance two  judges  of  the  Circuit  Court  of  the  judi- 
cial circuit  in  which  said  county  is  situated;  or,  in 
case,  the  larger  part  of  said  territory  shall  be  situated 
in  Cook  County,  two  of  the  judges  of  the  Circuit 
Court  of  said  Cook  County,  and  such  judges  shall 
constitute  a  board  of  commissioners  who  shall  have 
power  and  authority  to  consider  and  determine  the 
boundaries  of  any  such  proposed  transportation  dis- 
trict, whether  the  same  shall  be  described  in  such 
petition  or  otherwise.  Notice  shall  be  given  by  such 
county  judge  of  the  time  and  place  where  such  com- 
missioners will  meet,  by  a  publication  inserted  in  one 
or  more  newspapers  of  general  circulation  in  such 
county,  at  least  twenty  days  prior  to  such  meeting. 
At  such  meeting,  the  county  judge  shall  preside  and 
all  persons  in  such  proposed  transportation  district 
shall  have  an  opportunity  to  be  heard  touching  the 
location  and  boundaries  of  such  proposed  district  and 
to  make  suggestions  regarding  the  same;  and  such 
commissioners,  after  hearing  statements,  evidence 
and  suggestions,  shall  determine  and  fix  the  limits 


35 

and  boundaries  of  such  proposed  district,  and  for  that 
purpose  and  to  that  extent,  may  alter  and  amend 
such  petition. 

After  such  determination  by  said  commissioners, 
or  a  majority  of  them,  said  county  judge  shall  submit 
to  the  legal  voters  of  the  proposed  transportation  dis- 
trict the  question  of  the  organization  and  establish- 
ment of  such  district,  as  determined  by  said  commis- 
sioners, at  an  election  to  be  held  on  the  first  Tuesday 
after  the  first  Monday  in  November  (or  at  the  time  of 
holding  a  city  or  village  election  for  any  city  or  vil- 
lage within  such  proposed  transportation  district 
v^herein  reside  a  majority  of  the  legal  voters  of  such 
proposed  transportation  district)  then  next  ensuing, 
notice  whereof  shall  be  given  by  said  commissioners, 
at  least  twenty  days  prior  to  such  election,  by  publica- 
tion in  one  or  more  newspapers  of  general  circulation 
published  within  such  proposed  transportation  dis- 
trict, with  a  description  of  such  proposed  district. 
Each  legal  voter  resident  within  such  proposed  trans- 
portation district  shall  have  the  right  to  cast  a  ballot 
at  such  election,  with  the  words  thereon,  "For  Trans- 
portation District,"  and  "Against  Transportation 
District,"  and  to  indicate  his  preference  for  or  against 
the  creation  of  such  proposed  transportation  district. 
The  ballots  so  cast  shall  be  received,  returned  and 
canvassed  in  the  same  manner  and  by  the  same  of- 
ficers as  is  provided  by  law  in  the  case  of  ballots  cast 
for  public  officials.  The  election  officials  shall  cause  a 
statement  of  the  result  of  such  election  to  be  certified 
to  the  county  judge,  herein  before  designated,  and 


36 

said  county  judge  shall  cause  such  statement  to  be 
spread  upon  the  records  of  the  County  Court  wherein 
he  presides.  If  a  majority  of  the  votes  cast  upon  the 
question  of  the  incorporation  of  the  proposed  trans- 
portation district  shall  be  in  favor  of  the  proposed 
transportation  district,  such  proposed  district  shall 
thenceforth  be  an  organized  transportation  district 
under  this  act. 

Sec.  2.  All  courts  in  this  state  shall  take  judicial 
notice  of  the  existence  of  all  transportation  districts 
organized  under  this  act.  Upon  the  organization  of 
any  transportation  district  under  this  act,  said  county 
judge  shall  call  an  election  to  elect  trustees  of  such 
transportation  district,  in  accordance  with  the  provi- 
sions of  this  act,  and  shall  cause  notice  of  such  elec- 
tion of  trustees  to  be  posted  or  published,  and  per- 
form all  other  acts  in  reference  to  such  election  in  like 
manner  as  nearly  as  may  be,  as  he  is  required  to  per- 
form with  reference  to  the  election  of  officers  in  newly 
organized  cities  under  the  provisions  of  an  act  en- 
titled "An  Act  To  Provide  For  The  Incorporation  Of 
Cities  And  Villages,"  approved  April  10,  1872,  and 
amendments  thereof. 

Sec.  3.  In  each  transportation  district  organized 
under  this  act,  there  shall  be  elected  at  the  time  of 
holding  the  first  election  hereunder  six  trustees,  two 
of  whom  shall  be  elected  to  serve  until  the  first  day 
of  May  in  the  odd  numbered  year  next  following  such 
election,  two  to  serve  until  the  first  day  of  May  two 
years  thereafter,  and  two  to  serve  until  the  first  day 
of  May  four  years  thereafter,  it  being  the  intent  and 


37 

purpose  of  this  act  to  have  the  terms  of  two  of  such 
trustees  expire  on  the  first  day  of  May  in  each  odd 
numbered  year.  Thereafter,  at  the  expiration  of  the 
terms  of  the  several  trustees  elected  at  the  first  elec- 
tion, their  successors  shall  be  elected  for  a  term  of  six 
years  from  the  first  day  of  May  in  the  year  in  which 
they  are  elected  and  until  their  successors  are  elected 
and  qualified. 

(a)  General  elections  for  trustees  shall  be  held 
on  the  last  Tuesday  of  February  in  each  odd  num- 
bered year.  Any  supplementary  election  for  trustees 
held  under  the  provisions  of  this  act,  shall  be  held  on 
the  first  Tuesday  of  April  next  following  the  holding 
of  such  general  election.  The  first  election  of  trustees 
shall  be  held  on  the  date  fixed  by  the  county  judge  in 
accordence  with  the  provisions  of  Section  2  of  this 
act,  and  the  supplementary  election  following  such 
first  election  shall  be  held  four  weeks  thereafter. 

(b)  The  candidate  or  candidates  receiving  a 
majority  of  the  votes  cast  for  trustees  at  any  general 
or  special  election  held  hereunder  shall  be  declared 
elected.  If  the  number  of  trustees  declared  elected  at 
such  general  or  special  election  is  not  equal  to  the 
number  of  trustees  required  to  be  elected,  then  a  sup- 
plementary election  shall  be  held  as  herein  provided. 
If  one  candidate  only  receives  a  majority  of  the  votes 
cast,  then  the  two  candidates  receiving  the  next  high- 
est vote  less  than  a  majority,  and  no  others,  shall  be 
placed  upon  the  ballot  as  candidates  at  such  supple- 
mentary election.  In  the  event  that  no  candidate  re- 
ceives a  majority  of  the  votes  cast  in  the  general  or 


38 

special  election,  then  the  names  of  the  four  candidates 
receiving  the  highest  number  of  votes  at  the  preced- 
ing general  or  special  election,  and  no  others,  shall  be 
placed  on  the  ojFficial  ballot;  provided,  how^ever,  that 
if  there  be  any  candidate  or  candidates,  v;^ho,  under 
the  provisions  of  this  section  would  have  been  en- 
titled to  a  place  on  the  ballot  at  the  supplementary 
election  except  for  the  fact  that  some  other  candi- 
date received  an  equal  number  of  votes,  then  all  such 
candidates  receiving  such  equal  number  of  votes  shall 
have  their  names  printed  on  the  ballot  as  candidates 
at  such  succeeding  supplementary  election.  The 
candidate  or  candidates  receiving  the  highest  num- 
ber of  votes  at  such  supplementary  election  shall  be 
declared  elected.  Such  supplementary  election  shall 
be  deemed  a  special  election  under  the  election  laws 
in  force  in  the  territory  in  which  such  election  shall  be 
held,  and  shall  be  governed  thereby  except  insofar  as 
such  laws  may  be  inconsistent  with  the  provisions  of 
this  act. 

(c)  All  nominations  for  trustees  shall  be  by  pe- 
tition. All  petitions  for  nomination  of  candidates 
shall  be  signed  by  such  a  number  of  the  legal  voters 
of  such  district  as  will  aggregate  not  less  than  five 
per  cent  of  all  the  votes  cast  for  governor  in  the  ter- 
ritory embraced  in  such  district  at  the  last  preceding 
general  election.  All  such  petitions,  and  procedure 
with  respect  thereto,  shall  conform  in  other  respects 
to  the  provisions  of  the  election  and  ballot  laws  then 
in  force  in  the  territory  in  which  such  election  shall 


39 

be  held.  The  method  of  nomination  herein  provided 
is  exclusive  of  and  replaces  all  other  methods  hereto- 
fore provided  by  law. 

(d)  Any  candidate  for  trustee  under  the  provi- 
sions of  this  act  may  withdraw  his  name  as  such 
candidate  by  filing  with  the  county  clerk  of  the  coun- 
ty in  which  the  greater  part  of  the  territory  of  such 
transportation  district  is  located,  not  later  than  20 
days  before  the  holding  of  the  election,  his  written 
request  signed  by  him  and  duly  acknowledged  before 
an  officer  qualified  to  take  acknowledgements  of 
deeds,  whereupon  his  name  shall  not  be  printed  as  a 
candidate  upon  the  official  ballot. 

(e)  If  any  candidate  entitled  to  a  place  on  the 
official  ballot  at  any  supplementary  election  held 
hereunder  shall  die  or  withdraw  his  candidacy  before 
such  supplementary  election,  then  the  name  of  the 
candidate  who  shall  have  received  the  next  highest 
number  of  votes  in  the  general  or  special  election 
preceding  such  supplementary  election  shall  be  print- 
ed on  the  ballot  at  the  ensuing  supplementary  elec- 
tion in  lieu  of  the  name  of  the  candidate  who  shall 
have  died  or  withdrawn  his  candidacy. 

(f)  Ballots  to  be  used  in  general,  special  and 
supplementary  elections  held  under  the  provisions  of 
this  act,  in  addition  to  other  requirements  of  law, 
shall  conform  to  the  following  requirements: 

(1)  At  the  top  of  the  ballots  shall  be  printed 
in  capital  letters  words  designating  the  ballots.  If 
a  general  or  special  trustee  election,  the  words  shall 


40 

be,  "Transportation  District  official  election  ballot"; 
if  a  supplementary  election,  the  words  shall  be 
"Transportation  District  official  supplementary  elec- 
tion ballot." 

(2)  Beginning  not  less  than  one  inch  below 
such  designating  words,  and  extending  across  the 
face  of  the  ballot,  the  title  of  the  office  to  be  filled 
shall  be  printed  in  capital  letters. 

(3)  The  names  of  candidates  for  different  terms 
of  service  therein  (if  any  there  be)  shall  be  arranged 
and  printed  in  groups  according  to  the  length  of  such 
terms. 

(4)  Immediately  below  the  title  of  each  office 
or  group  heading  indicating  the  term  of  office,  shall 
be  printed  in  small  letters  the  direction  to  voters, 
"vote  for  one"  or  "vote  for  two"  as  the  case  may  be. 

(5)  Following  thereupon,  shall  be  printed  the 
names  of  the  candidates  for  trustees  according  to  the 
terms  thereof,  and  below  the  name  of  each  candidate 
shall  be  printed  his  place  of  residence,  stating  the 
street  and  number,  if  any.  The  names  of  candidates 
shall  be  printed  in  capital  letters  not  less  than  one- 
eighth  nor  more  than  one-fourth  inch  in  height,  and 
immediately  at  the  left  of  the  name  of  each  candidate 
shall  be  printed  a  square,  the  sides  of  which  shall  not 
be  less  than  one-fourth  inch  in  length.  The  names  of 
all  the  candidates  for  each  office  shall  be  printed  in 
a  column  and  arranged  in  the  order  hereinafter  desig- 
nated ;  all  the  names  of  candidates  shall  be  printed  in 
uniform  type;  the  place  of  residence  of  such  candi- 


41 

dates  shall  be  printed  in  uniform  type;  and  the 
squares  upon  said  ballots  shall  be  of  uniform  size; 
and  spaces  between  the  names  of  the  candidates  for 
the  same  office  shall  be  of  uniform  size. 

(6)  Said  ballots  shall  be  prepared  in  as  many 
series  as  there  are  candidates  in  the  group  in  which 
there  is  the  largest  number  of  names.  .The  ballots 
of  the  first  series  shall  contain  the  names  of  all  the 
candidates  for  each  group  to  be  filled,  one  immediate- 
ly following  the  other  in  alphabetical  order  according 
to  their  surnames;  the  ballots  of  the  second  series 
shall  be  like  those  of  the  first  series,  except  that  the 
name  appearing  first  in  the  list  of  candidates  for  each 
group  in  said  first  series  shall,  in  the  second  series,  be 
printed  after  all  the  other  names  in  the  list  of  candi- 
dates for  such  group;  the  ballots  of  the  third  series 
shall  be  like  those  of  the  second  series,  except  that 
the  name  first  appearing  in  the  list  of  candidates  for 
each  group  in  said  second  series  shall  be  printed  after 
all  the  other  names  in  the  list  of  candidates  for  such 
group;  and  so  on  successively,  the  name  at  the  top 
of  any  list  of  candidates  for  each  group  in  any  series 
being  placed  at  the  bottom  of  the  respective  lists  of 
candidates  for  such  group  in  each  succeeding  series, 
until  the  name  of  each  candidate  for  each  group  shall 
appear  at  least  once  at  the  head  of  the  list  of  candi- 
dates for  such  group.  The  different  series  of  ballots 
shall  be  distributed  in  substantial  equality  among  all 
the  voting  precincts  comprised  in  such  Transporta- 
tion District :  Provided,  that  ballots  of  no  more  than 
one  series  shall  be  distributed  to  one  voting  precinct. 


42 


(g)  Each  voting  precinct  in  such  transporta- 
tion district  shall  be  allotted  at  each  general,  special 
or  supplementary  election  held  therein  a  number  of 
ballots  equal  to  the  total  number  of  votes  cast  for 
governor  in  such  precinct  at  the  next  preceding  gen- 
eral election  and  in  addition  thereto  ten  per  cent.  On 
the  back  or  outside  of  the  ballot  of  each  voting  pre- 
cinct shall  be  printed  proper  words  so  as  to  be  visible 
when  said  ballot  is  folded,  designating  said  ballot, 
the  precinct,  the  date  of  the  election,  and  exhibiting 
a  facsimile  signature  of  the  election  official  having  in 
charge  the  printing  of  the  ballots. 

(h)  No  party  name,  party  initial,  party  circle, 
platform,  principle,  appellation  or  distinguishing 
mark  of  any  kind,  shall  be  printed  upon  any  election 
ballot  used  at  any  election  held  under  the  provisions 
of  this  act.  If  any  party  primary  election  or  any  elec- 
tion for  any  office  other  than  transportation  district 
trustees  shall  be  held  at  the  same  time  with  any  trans- 
portation district  election,  the  ballots  for  transporta- 
tion district  trustees  shall  be  separate  from  all  other 
ballots,  except  that  any  question  relating  to  such 
transportation  district  submitted  to  the  voters  thereof 
and  not  required  by  law  to  be  submitted  on  a  separate 
ballot,  shall  be  submitted  upon  the  same  ballot  as 
that  used  for  transportation  district  trustees. 

(i)  In  all  elections  held  hereunder,  whether 
general,  special  or  supplementary,  the  polls  shall  be 
opened  at  six  o'clock  in  the  morning  and  remain  open 
until  four  o'clock  in  the  afternoon;  provided,  if  any 
elections  hereunder  shall  fall  on  the  same  day  as  any 
city,  village  or  township  election,  then  the  polls  in 


43 


such  city,  village  or  township  shall  remain  open  for 
the  election  of  trustees  of  such  transportation  district 
during  the  same  hours  as  they  are  open  for  such  city, 
village  or  township  election. 

(j)  Any  candidate  for  trustee  under  the  provi- 
sions of  this  act  may  appoint  in  writing  over  his  sig- 
nature not  more  than  one  representative  for  each 
place  of  voting  who  shall  have  the  right  to  act  as 
challenger  and  watcher  for  such  candidate  at  any 
election  at  which  his  name  is  being  voted  upon.  Such 
challenger  and  watcher  shall  have  the  same  powers 
and  privileges  as  a  challenger  and  watcher  under  the 
election  laws  of  Illinois.  No  political  party  shall 
have  the  right  to  keep  any  challenger  or  watcher 
at  any  polling  place  at  any  election  held  under  the 
provisions  of  this  act  unless  candidates  for  some  office 
other  than  transportation  district  trustees  are  to  be 
voted  for  at  the  same  time. 

(k)  No  certificate  of  election  shall  be  given  to 
any  candidate  who  shall  be  declared  elected  at  any 
general  or  special  election  held  hereunder  until  after 
the  date  fixed  by  this  act  for  the  holding  of  the  sup- 
plementary election  herein  provided  for. 

(1)  In  all  elections  for  trustees  each  elector  resi- 
dent in  such  transportation  district  may  vote  for  as 
many  candidates  as  there  are  trustees  to  be  elected, 
but  no  elector  may  give  to  such  candidates  more 
than  one  vote  each,  it  being  the  intent  and  purpose  of 
this  act  to  prohibit  cumulative  voting  in  the  election 
of  members  of  the  board  of  trustees  of  such  trans- 
portation district. 


44 

When  a  vacancy  shall  occur  in  the  office  of 
trustee  of  any  local  transportation  district  organ- 
ized under  the  provisions  of  this  act,  the  vacancy  shall 
be  filled  by  appointment  by  the  board  of  trustees  of 
such  district,  and  the  person  so  appointed  to  fill  such 
vacancy  shall  perform  the  duties  of  a  trustee  of  said 
district  until  the  next  regular  election  shall  be  held 
as  herein  provided,  at  which  time  a  trustee  shall  be 
elected  to  fill  the  remainder  of  the  unexpired  term. 

Such  transportation  district  shall,  from  the  time 
of  the  first  election  held  by  it  under  this  act,  be  a 
body  corporate  and  politic,  by  the  name  and  style  of 

"Transportation  District  of " 

and  by  such  name  and  style  may  sue  and  be  sued,  con- 
tract and  be  contracted  with,  acquire  and  hold  real 
estate  and  personal  property  necessary  for  corporate 
purposes,  and  may  sell  and  dispose  of  the  same  when 
no  longer  needed  for  the  purposes  of  such  district, 
adopt  a  corporate  seal,  and  alter  the  same  at  pleasure. 

Sec.  4.  The  trustees  elected  in  pursuance  of 
the  provisions  of  this  act  shall  constitute  a  board  of 
trustees  for  the  transportation  district  in  which  they 
are  elected,  and  which  board  of  trustees  are  hereby 
declared  to  be  corporate  authorities  of  such  trans- 
portation district  and  shall  exercise  all  the  powers 
and  manage  and  control  all  the  affairs  and  property 
of  such  district.  Said  board  of  trustees  shall  elect 
annually  from  their  membership,  a  president  and  vice- 
president,  and  shall  have  the  right  to  elect  outside 
their  membership  a  clerk,  treasurer,  chief  engineer 
and  attorney  for  such  district,  who  shall  hold  their 


45 


offices  during  the  pleasure  of  the  board  and  who 
shall  give  such  bonds  as  may  be  required  by  said 
board.  The  president  shall  preside  at  the  meetings 
of  the  board  of  trustees  and  shall  have  the  same 
power  to  vote  at  such  meetings  as  any  other  member, 
and  in  case  of  a  tie  he  shall  cast  the  deciding  vote,  but 
shall  have  no  power  to  veto.  Said  board  shall  pre- 
scribe the  duties  and  fix  the  compensation  of  the 
trustees,  officers  and  employees  of  said  transporta- 
tion district ;  provided,  however,  that  the  salary  of  the 
members  of  said  board  of  trustees  shall  in  no  case  ex- 
ceed the  salary  fixed  by  law  for  judges  of  the  Circuit 
Court  presiding  in  the  territory  in  which  the  princi- 
pal office  of  said  transportation  district  is  located. 
The  president  of  said  board  of  trustees  may  appoint 
a  private  secretary,  who  shall  receive  a  salary  not  to 
exceed  $5,000  per  annum. 

Said  board  of  trustees  shall  have  power  to  pass 
ordinances,  orders,  rules,  resolutions  and  regulations 
for  the  employment  and  discharge  of  employees  and 
for  the  proper  management  and  conduct  of  the  busi- 
ness of  said  board  of  trustees,  and  of  said  corpora- 
tion and  for  carrying  into  effect  the  objects  for  which 
such  transportation  district  is  created. 

Sec.  5.  Every  ordinance  making  an  appropria- 
tion shall  within  one  month  after  it  is  passed,  be  pub- 
lished at  least  once  in  a  newspaper  of  general  circula- 
tion published  in  such  district,  or  if  no  such  newspa- 
per be  published  therein,  then  by  posting  copies  of 
the  same  in  three  public  places  in  the  district,  and  no 
such  ordinance  shall  take  effect  until  ten  days  after 


46 

it  is  so  published ;  and  all  other  ordinances,  orders  and 
resolutions  shall  take  effect  from  and  after  their  pass- 
age, unless  otherwise  provided  therein. 

Sec.  6.  All  ordinances,  orders  and  resolutions, 
and  the  date  of  publication  thereof,  may  be  proven  by 
the  certificate  of  the  clerk,  under  the  seal  of  the  cor- 
poration; and  when  printed  in  book  or  pamphlet 
form,  and  purporting  to  be  published  by  authority  of 
the  board  of  trustees,  any  such  book  or  pamphlet  shall 
be  received  as  evidence  of  the  passage  and  legal  pub- 
lication of  such  ordinances,  orders  and  resolutions,  as 
of  the  dates  mentioned  in  such  book  or  pamphlet 
without  further  proof. 

Sec.  7.  The  board  of  trustees  of  any  transporta- 
tion district  organized  under  this  act,  shall  have  pow- 
er to  provide  such  system  or  systems  of  local  trans- 
portation as  will  conduce  to  the  health,  comfort,  wel- 
fare and  convenience  of  the  people,  with  such  exten- 
sions and  alterations  thereof  and  additions  thereto 
as  from  time  to  time  may  be  deemed  advisable,  and 
for  that  purpose  shall  have  power  to  construct,  con- 
demn, purchase,  lease,  or  by  any  combination  of  such 
methods,  or  otherwise,  acquire  street  railways,  mono- 
rails, motor  busses,  subways,  tunnels  and  other  prop- 
erties, used  or  capable  of  being  used,  or  hereafter  em- 
ployed or  developed  as  a  means  of  local  transportation 
over,  upon,  above  or  below  the  surface  of  the  earth 
or  waters  within  such  district  including  any  plant 
or  plants,  equipment  or  other  property  necessary  or 
appropriate  for  its  corporate  purposes ;  with  authority 
to  own  the  same  and  to  maintain,  regulate  and  con- 


47 

trol  the  use  and  operation  thereof;  and  to  fix,  alter, 
regulate  and  control  the  rates  charged  for  transporta- 
tion over  or  upon  such  transportation  system  or  sys- 
tems; provided,  that  in  no  case  shall  the  rate  of  fare 
exceed  five  cents  (5c)  for  one  person  for  a  continuous 
trip  in  the  same  general  direction  wholly  within  the 
limits  of  any  incorporated  city  or  village  within  such 
transportation  district. 

When  it  is  necessary  for  the  acquisition,  con- 
struction, extension,  maintenance  or  operation  of  any 
transportation  system  or  systems  herein  authorized, 
or  of  the  appurtenances  thereto,  to  take  or  damage 
private  property,  the  same  may  be  done,  and  the  com- 
pensation therefor  may  be  ascertained  and  fixed  in  the 
manner  which  may  then  be  provided  by  any  law  for 
the  exercise  of  the  right  of  eminent  domain;  it  being 
hereby  declared  that  the  uses  of  property  required  by 
local  transportation  districts  organized  under  this  act 
are  higher  public  uses  than  the  public  uses  of  such 
properties  while  in  the  possession,  operation  or  own- 
ership of  private  persons  or  corporations. 

No  transportation  district  organized  under  this 
act,  shall  have  the  right  to  construct  and  operate  a 
street  railroad  within  any  city,  town  or  incorporated 
village  without  requiring  the  consent  of  the  local  au- 
thorities having  the  control  of  the  street  or  highway 
proposed  to  be  occupied  by  such  street  railroad. 

Sec.  8.  Any  transportation  district  organized 
hereunder  may  borrow  money  for  corporate  purposes, 
and  may  issue  bonds  therefor,  but  shall  not  become 
indebted  in  any  manner,  or  for  any   purpose    to    an 


48 

amount  in  the  aggregate  to  exceed  five  per  centum  on 
the  value  of  taxable  property  therein,  to  be  ascer- 
tained by  the  last  assessment  for  state  and  county 
taxes  previous  to  the  incurring  of  such  indebtedness. 
At  the  time  6r  before  incurring  any  indebtedness,  the 
board  of  trustees  shall  provide  for  the  collection  of  a 
direct  annual  tax  sufficient  to  pay  the  interest  on  such 
debt  as  it  falls  due,  and  also  to  pay  and  discharge  the 
principal  thereof  as  the  same  shall  fall  due,  and  at 
least  within  twenty  years  from  the  time  of  contract- 
ing the  same:  Provided,  that  the  net  earnings  from 
any  transportation  system  or  systems  constructed  or 
acquired  and  operated  hereunder  may  be  appropri- 
ated and  applied  to  the  purpose  of  paying  the  interest 
or  principal  of  such  indebtedness,  or  both,  and  to  the 
extent  that  they  will  suffice,  the  direct  tax  may  be 
remitted. 

Sec.  9.  The  Board  of  Trustees  may  levy  and 
collect  taxes  for  corporate  purposes  upon  property 
within  the  territorial  limits  of  the  transportation  dis- 
trict, the  aggregate  amount  of  which  in  any  one  year 
shall  not  exceed  the  sum  required  for  the  payment 
of  the  corporate  expenses  of  such  transportation  dis- 
trict, including  provision  for  payment  of  interest  on 
outstanding  bonds  of  such  transportation  district  and 
to  provide  an  adequate  sinking  fund  for  the  redemp- 
tion of  such  bonds  as  they  mature;  and,  in  the  dis- 
cretion of  the  Board  of  Trustees,  such  additional  sum, 
if  any,  required  for  payment  of  any  difference  which 
may  exist  between  the  total  receipts  of  said  transpor- 
tation district  from  the  operation  of  its  system  or  sys- 


49 


tems  of  local  transportation,  for  the  preceding  year, 
and  the  total  amount  required  to  pay  its  corporate 
expenses,  interest  on  bonds  and  sinking  fund  as  afore- 
said, and  for  the  maintenance  and  operation,  replace- 
ments and  renewals  of  its  said  system  or  systems  of 
local  transportation. 

Sec.  10.  The  property,  both  real  and  personal, 
of  any  transportation  district  organized  in  accord- 
ance with  the  provisions  of  this  act  shall  be  exempt 
from  taxation,  whether  such  property  be  located 
within  or  without  such  district. 

Sec.  11.  Any  portion  of  a  county,  no  part  of 
which  portion  of  the  county  is  within  a  local  trans- 
portation district,  but  which  lies  contiguous  to  such 
district,  may  become  annexed  thereto  as  herein  pro- 
vided, and  when  so  annexed  shall  become  a  part  there- 
of, and  when  so  incorporated  in  such  district  the 
property  in  such  annexed  territory  shall  be  liable  for 
taxation  for  the  purpose  of  paying  existing  indebt- 
edness of  such  district  in  like  manner  as  though  the 
same  had  formed  a  part  of  said  district  at  the  time  of 
the  original  creation  thereof. 

The  legal  voters  of  any  such  contiguous  ter- 
ritory who  may  desire  to  have  the  same  incorporated 
within  such  district,  shall  file  with  the  board  of  trus- 
tees of  such  district  a  petition  therefor  signed  by  not 
less  than  three  per  cent  of  the  legal  voters  of  such 
contiguous  territory.  Upon  the  filing  of  such  petition 
such  board  of  trustees  shall  have  the  authority  to  pass 
a  resolution  granting  the  prayer  of  such  petition  sub- 


50 

ject  to  the  result  of  an  election  as  hereinafter  pro- 
vided. If  such  resolution  shall  be  adopted,  it  shall  be 
the  duty  of  he  said  board  of  trustees  to  certify  a  copy 
thereof  to  the  county  clerk  of  the  county  in  which  the 
principal  office  of  such  district  is  situated  who  shall 
submit  the  question  to  the  legal  voters  of  such  district 
as  to  whether  or  not  the  said  contiguous  territory 
shall  be  incorporated  in  said  district ;  and  if  the  same 
shall  be  approved  by  a  majority  vote  of  the  legal  voters 
voting  on  such  question  at  the  election  in  said  con- 
tiguous territory,  and  by  a  majority  vote  of  all  the 
legal  voters  voting  thereon  at  the  election  in  said 
transportation  district,  the  said  contiguous  territory 
shall  thereupon  be  incorporated  in  and  become  a  part 
of  said  district  for  all  purposes.  The  vote  to  be  taken 
to  determine  the  said  question  of  annexation  shall 
be  taken  at  any  regular  or  special  election  called  for 
said  district  for  any  purpose  provided  in  this  act,  or 
at  any  general  election. 

Sec.  12.  The  rates  of  fare,  charges,  schedules, 
rules  and  regulations  of  a  local  transportation  dis- 
trict created  under  the  provisions  of  this  act  shall  not 
be  subject  to  the  control  of  or  review  by  any  other 
governmental  agency  of  the  State  of  Illinois,  now  or 
hereafter  existing  under  and  by  virtue  of  the  laws  of 
this  state. 

Sec.  13.  The  invalidity  of  any  portion  of  this 
act,  shall  not  affect  the  validity  of  any  other  portion 
thereof  which  can  be  given  effect  without  such  in- 
valid part. 


51 


Sec.  14.  Any  and  all  laws  or  parts  of  laws  in 
conflict  with  this  act,  or  any  part  thereof,  are  here- 
by repealed. 

Sec.  15.  Whereas,  an  emergency  exists,  there- 
fore this  act  is  to  take  effect  and  be  in  force  from  and 
after  the  date  of  its  passage  and  approval. 


y^ 


<t»BRARY 
PUBOCAFFft'^'^  SERVICE 


■CfEP  0  9  1980. 


ifORNIA 


